[Al] CBI Morning Review - 2008/12/19 Aluminum Market

SHANGHAI, Dec. 19 (CBI China) -- One of the three major U.S. auto giants Chrysler Group announced the production cuts, indicating the financial crisis has exert impact on the real economy, other major car manufacturers also announced production cuts in different degrees. The market's concerns about the economic recession rose again, NYMEX crude oil futures fell to USD 36.25/barrel. Overnight LME copper fell by USD 175/mt and closed at USD 2,875/mt, and below the pre-prices of USD 3,000/mt. Overnight three-month LME copper prices were relatively stable, only down USD 15/mt, closed at USD 1,490/mt, the positions remained at USD 37.5/mt, the inventories increased further by 27,100 mt to 2.0689 million mt. As to SHFE aluminum, the competition between the long and the short in the market intensified, although the short would continue, businesses were not sure about the degree an the time of rebound in the short term. Meanwhile there exists many unfavorable news in the market, as a result, the main contract will fluctuate around RMB 10,500/mt in the short term.

 
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